There is a common myth that mortgage lenders in the UK do not lend to those with a bad credit history. This is not the case as there are plenty of specialist lenders out there willing to be more lenient with your bad credit. They are willing to consider those with a history of CCJs, IVAs, arrears, late/missed payments, defaults, DMPs, bankruptcies and even repossessions. You will need to meet the lender’s other criteria and may have to pay a slightly higher interest rate compared to someone with clean credit. But if you keep up with monthly repayments and maintain a good report you could start to improve your credit as time goes on and you will then have access to much more competitive rates.
If you need help with securing a mortgage with bad credit in the UK get in touch and we will put you in contact with one of our expert mortgage advisors. They have great connections to a range of lenders who will specialise in bad credit mortgage cases.
This is a possibility with a specialist bad credit lender as they typically dive deeper to understand your bad credit and why it happened. Mainstream mortgage lenders have much tighter criteria and often do not like to take the risk bad credit creates. Your chances will improve further if your missed/late payments were from over three years ago and you have maintained an excellent credit report since.
A mortgage is still possible if you have a history of County Court Judgements (CCJs). You will need to make sure you meet the lender’s other criteria as closely as you can and may even need to provide a larger deposit depending on whether your CCJ has been satisfied and how much time has passed since it was registered.
If your CCJ was registered in the last year you may have a smaller pool of lenders willing to help you as there has not been a lot of time to prove that you are less of a risk. Our mortgage superheroes at MoneyNest can look into your individual situation and evaluate your options for you.
There are mortgage lenders out there who specialise in defaults but as with most bad credit you will need to meet their other policies. Overall, it will depend on how long ago the defaults happened, the type of loan you defaulted on and when you settled the debts. Some defaults are considered less severe such as missed phone payments, whereas a missed mortgage payment would be taken seriously by the lender. We recommend you pay and satisfy your debts before looking into mortgage applications as this portrays you in the best light to the lender.
Yes, but the main issue with debt management plans when applying for a mortgage is that you must show that you can afford your mortgage payments alongside the debt. Lenders will consider you less of a risk if your DMP has been in place for a while and you have made all payments on time. However, a DMP taken out in the last 6 months will be considered a much higher risk. It is worth noting that your affordability will be impacted by the DMP as some lenders may use only the monthly contribution you pay and others will use the full debt total which could change the size of the loan you are offered. As with all bad credit you may be expected to increase your deposit and/or pay higher interest rates.
You can get a mortgage but when it comes to Individual Voluntary Agreements the more historical they are the better the mortgage deal could be. The IVA will drop off your credit report after 6 years which would automatically secure you better rates, so sometimes it is worth waiting until that point or until you have finished paying it off.
There are mortgage options available to those with a history of bankruptcy. You will need to have been discharged from your bankruptcy and you may be offered an initially high rate while you are still considered a larger risk to the lenders.
It’s certainly possible and something we help a lot of customers with. Like many negative credit issues, the longer the amount of time that has passed since the repossession the better. You will need a repossession specialist to navigate the complexities that come with getting a mortgage with bad credit in the UK.
No matter what your bad credit issue is we know looking for a mortgage can be a long and difficult process. So, let our mortgage experts take the stress away from you and trust us with your mortgage journey. We understand the obstacles you can face with bad credit as we have a long history of helping customers in the same boat as you. We really want to help so follow the links below to get in touch and one of our expert superheroes will be right with you!
If your credit issues are holding you back, our credit expert hero’s are here to set you free!
